Litecoin (LTC) Price Breaks Out: Is a Pullback Still on the Table? Here's the Outlook

Litecoin's price just broke higher after moving sideways for a while. But trader Jip Molenaar and others are still being careful since the price hasn't touched the recent low point yet. This means we might see prices dip before climbing further.

Litecoin (LTC) price showed a strong breakout on December 18. However, a closer examination of the chart reveals a crucial detail that has left some traders, including Jip Molenaar, hesitant to fully commit.

Litecoin’s price just broke higher after moving sideways for a while. But trader Jip Molenaar and others are still being careful since the price hasn’t touched the recent low point yet. This means we might see prices dip before climbing further.

Litecoin’s price chart on the 12-hour timeframe shows a significant move upward, breaking above prior resistance levels. The sharp pump occurred after a prolonged phase of sideways price movement, where LTC’s price traded within a narrow range between December 12 and December 18. The breakout pushed the price toward resistance levels around $122 and $140, showing clear bullish momentum.

However, despite this breakout, Jip Molenaar, a prominent analyst, expressed reservations on X. He highlighted that the breakout happened “without sweeping the low.” This observation points to the untested liquidity at lower support levels near $69–$70. Molenaar stated that he is waiting for a retest of these levels before positioning himself for a long trade.

The chart reveals a well-defined support zone near $69–$70, marked by a grey area where the LTC price previously stabilized. This region represents a potential accumulation area for buyers. However, the price has yet to revisit this level after the recent pump.

On the upside, resistance levels are evident at $122 and $140. The initial resistance at $122 coincides with a prior local high where price action faced rejection. The upper resistance near $140 marks the breakout target, aligning with Litecoin’s peak following the sudden rally.

The current price is in a delicate position. While bulls have pushed LTC higher, failure to sustain the breakout could see a retracement back toward support levels.

Molenaar’s cautious stance aligns with the concept of liquidity sweeps. A liquidity sweep occurs when prices dip below key support to trigger stop losses or collect liquidity before reversing higher. Since Litecoin has yet to test the support lows, some traders are skeptical of the breakout’s sustainability.

Traders watching LTC may consider two scenarios: a potential retracement to sweep the lows or sustained bullish momentum above the breakout levels. If Litecoin’s price holds its breakout, it could pave the way for continued gains. However, a failure to hold above the recent range might validate the concerns of traders like Molenaar.